1

1

E-mail Article

Printer Friendly

Share Article

GCC stock markets lose $127bn in Nov

GCC stock markets recorded one of its worst month-on-month (MOM) performances in 2008 in November, according to the latest report by the Kuwait Financial Centre (Markaz).

The region’s market cap fell by $127 billion during the month to $595 billion which represented a nearly four-year low.
According to the Markaz Index, all markets in the Gulf saw a decline in volatility compared to October, with the exception of Saudi Arabia which reported a 12 percent rise in volatility levels.

GCC markets showed some signs of recovery, the Markaz report added, after performing poorly in October but low investor confidence and panic due to the global credit crisis continued to impair market performance.

The Saudi Arabian market continued to witness a significant decline in November.

After plunging (on MoM basis) 14.8 percent in September and 25.8 percent in October, the market lost a further 14.4 percent in November. During the last three months, the Saudi market has lost 45.9 percent.

The Kuwait Price Index, which measures the performance of the Kuwaiti market, continued to decline in November and lost 9.3 percent MoM.

In the UAE, negative investor sentiment due to concerns over the performance of the real estate sector and uncertainty regarding the UAE’s exposure to global financial markets left bourses in the country battered in November, the report added.

The Dubai Financial Market (DFM) declined 33.2 percent, whereas the Abu Dhabi Exchange lost 16.5 percent during the month. The losses were even more evident on a YTD basis — the DFM and ADX indices fell 66.9 percent and 39 percent respectively.

Qatar’s Doha Securities Market (DSM) fell 12.4 percent in November after falling 25.6 percent in October.

Oman stock exchange was the only GCC market to post gains during November, rising one percent after declining 26.9 percent in October while the Bahraini market fell 12.2 percent MoM in November.

No Comments